Embedding consumer taste for location into a structural model of equilibrium

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Title: Embedding consumer taste for location into a structural model of equilibrium
Authors: Whelan, Ciara
Mariuzzo, Franco
Walsh, Patrick P.
Permanent link: http://hdl.handle.net/10197/140
Date: 20-Jan-2005
Abstract: Given that brands (products) are location specific in terms of coverage of retail stores, we allow consumers to have preferences over location and products to carry distribution costs, alongside preferences and costs over other observable and unobservable product characteristics. We embed these considerations into Berry, Levinsohn and Pakes (1995) to jointly estimate demand and cost parameters for brands (products) in Retail Carbonated Soft Drinks. Allowing for location has a very significant impact on estimated primitives and the predictive power of the structural model. As a counterfactual exercise we show the effects on welfare of an equilibrium that results from a change in the distribution of consumer taste for location.
Type of material: Working Paper
Publisher: University College Dublin; School of Economics
Copyright (published version): 2005, Authors
Keywords: Consumer taste for location distributionsDifferentiated productsDiscrete choiceAggregationStructural modelRetail carbonated soft drinks
Subject LCSH: Consumers' preferences
Product differentiation
Soft drinks
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Politics and International Relations Research Collection
Geary Institute Research Collection
Economics Working Papers & Policy Papers

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